RailNews

GE Transportation and Wabtec to Merge

Wabtec Corporation has entered into a definitive agreement to combine with GE Transportation, a unit of General Electric Company. The combination will make Wabtec a Fortune 500, global transportation leader in rail equipment, software and services, with operations in more than 50 countries.

Under the agreement, which has been approved by the Boards of Directors of Wabtec and GE, GE will receive $2.9 billion in cash at closing and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with Wabtec shareholders retaining 49.9% of the combined company. The transaction is expected to be tax free to the companies’ respective shareholders.

According to a November 8 filing with the Surface Transportation Board, Watco will operate 49 miles of Norfolk Southern’s Ithaca Secondary between Sudbury, Pa., and Lansing, N.Y., as the Ithaca Central Railroad.